Channel partner programs, Mergers and Acquisitions

HP Enterprise Spins Off, Merges Services Business With CSC

Hewlett Packard Enterprise is spinning off and merging its enterprise IT services business with CSC, the companies confirmed today.

Among the highlights from the deal, according to HPE:

  • Transaction will deliver HPE shareholders approximately $8.5 billion in expected after-tax value in stock-for-stock exchange;
  • Merger of two businesses expected to produce first-year cost synergies of approximately $1 billion post-close, with run rate of $1.5 billion by end of year one; and
  • HPE shareholders will own approximately 50 percent of new combined company.

Read between the lines and most HP Enterprise channel partners should be celebrating. HPE's consulting business, which has been a drag on the company, also competed on some fronts with partners.

Still, there are lingering challenges. For instance, the HPE-CSC relationship could upset some of HPE's large integration partners...

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.